The Benefits of Owning a Rental Property

cropped view of woman holding pen near clipboard with rental agreement lettering and agent with keys
Home 9 Rental of Apartments 9 The Benefits of Owning a Rental Property

When considering purchasing a rental property, there are numerous advantages to take advantage of. Not only is it an excellent investment option and source of income, but renting can also provide numerous other advantages as well. In the following article we’ll outline some of these advantages that renting can offer.


What are the advantages of owning a rental property?


Rents paid to a rental property tend to remain consistent over time.

No need to fret over rental vacancy or unpaid rent because your property is maintained by its owner. Furthermore, current maintenance costs and repairs are taken care of by the manager.

Land income can be a reliable source of retirement or additional income. Real estate investments are usually seen as secure solutions to build a sustainable and stable legacy.

Rental investment is an ideal way to diversify your portfolio by investing in various real estate types (homes, offices, shops), giving you access to both European and international real estate markets. Moreover, smart homes are starting to emerge as good investment for real estate, so you can consider it an option !

Investing in real estate allows investors to take advantage of the potential profitability of the local market, optimize rental performance and reap tax benefits associated with their specific tax status (LMNP/LMP).


Metal red model of a house and stairs of golden coins. The concept rental or buying the estate.

Renting your property can have many benefits !

What types of income can a rental owner generate?

Renting a property can generate several forms of income for its owner.

Rental income from real estate investments is the initial source of passive income. As an owner, you are paid rent each month.

The amount of rents charged depends on the market price and quality of a rental property. As a lessor owner, you may receive part of your capital back as interest if your mortgage is reimbursed through rents collected under commercial lease agreements with tenants. Furthermore, you could make capital gains upon reselling the accommodation if it sells quickly after acquisition or take advantage of tax exemptions for certain costs (management fees and works).


What are the tax benefits to an owner of a rental property?

When purchasing a rental property, you may deduct from your income the costs of repairs and improvements to the building.

You can deduct part of the interest paid for borrowing contracted to purchase a rental property. Furthermore, if the property is lived in by an individual or via a real estate civil society (SCI), they have different tax regimes available to choose from.


The initial step involves complying with the progressive scale of income tax income from furnished and unpleasant rentals.

The second allows partners of an SCI that has adopted an average rate on its results to subject the share corresponding to goods they personally enjoy to a proportionate rate equal to that applied to other members’ shares. Finally, if taxation is done through lump sum reduction, partners have the option of including rents collected in their taxable bases in accordance with charges supported during the year as well as depreciation on net amount retained for calculation of their share.


What are the duties of an owner of a rental property?

As a responsible land owner, it’s essential to be aware of your duties as an owner and take time to consider before investing. As the owner, you are accountable for both the building and tenants who occupy it.

You are ultimately responsible for all maintenance and repairs on your property. If you rent a house for EUR 1,000 per month or more, it can be considered income. Therefore, governments have implemented stringent regulations to limit how much real estate individuals may own on an individual basis. Before renting a property, it is essential that you are informed about the laws and regulations related to renting an apartment or house.

Renting a lease house for more than EUR 1,000 per month can be considered income. As such, governments have implemented stringent regulations to limit the number of real estate properties individuals may own on a personal basis.


What are the risks associated with renting a property?


When investing in rental property, the primary risk is becoming over-bought and losing money. This often occurs if the owner overpriced their property. Furthermore, complex properties may have under-andamped floors or no floors at all – all of which could pose significant problems if not taken care of correctly.

In such cases, your tenant may fail to pay you any incoming money and you end up having more money than what was paid by the owner (if there is still money).


How to find a quality rental property and an ideal tenant?


Before beginning your real estate investment project, it is essential to decide what type of investment to pursue and why.

You have the option of investing in either a single property or multiple real estate assets. If you plan to acquire multiple goods, opt for accommodation located close together; this will make renting apartments more convenient when the need arises, depending on what’s needed at that moment.


When purchasing a property, take care to select an attractive location that appeals to the local population.

It is essential that the property be situated near schools and services essential for daily tenants (public transport, shops). Finally, when selecting a tenant, make sure they pay their rent on time and abide by co-ownership rules.

Vous apprécierez aussi

Real estate agent or financial advisor consulting with client for real estate investment.

The Advantages of Investing in Commercial Real Estate

Investing in Commercial Real Estate is an Excellent Way to Generate Wealth. It can be used for both personal and professional objectives. While investing can be highly rewarding, it requires a long-term commitment. In this article, we will cover some of the Benefits...
Couple Buying House

The Pros and Cons of Buying vs. Renting a Home

Renting Versus Buying a Home, what's best ? Renting can have its advantages, but there are also drawbacks. In this article we'll compare the pros and cons of both options. What are the advantages and drawbacks of buying a house compared to renting? Ultimately, what...
Drawing with crowdfunding concept in the notepad

Real Estate Crowdfunding: Benefits and Risks

The Real Estate Crowdfunding is a new form of finance that allows investors to invest in real estate fartes through a platform. The Platform Provids The Necessary Tools and Information to Investors, Such as a Website with Detailed Information about Each Project and...
Red location pin and houses. Location concept, settlement. Tracking, internet of things.

The Role of Location in Real Estate Investing

Location is one of the major characteristics to take into account when you are real estate investing ! In this article, I will Explain How Rental can be used to determine the Value of A Property and What It Means for Investors !   What is the importance of...
Smart home control

The Future of Smart Homes in Real Estate

The advent of smart home technology has revolutionized the real estate industry, offering unprecedented advantages to buyers, sellers and real estate professionals alike. Smart homes have become increasingly popular and widely adopted due to their increased comfort...